BSL City Council Votes on Short-term Rental Ordinance

Big Buzz Blog - August 2024

The Bay St.Louis City Council tries to strike a balance between property owners looking to provide housing for visitors and homeowners troubled by the negative consequences of of the rental units.

- by Lisa Monti

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After years of discussions, the Bay St. Louis City Council has adopted an ordinance to identify and regulate short-term rentals.
 
The ordinance passed by a vote of 5-1, with Council member Kyle Lewis casting the nay vote at the August 20 meeting.
 
Bay St. Louis follows other coastal cities, including Waveland and Diamondhead, in adopting an ordinance to regulate short-term rental units with various requirements and restrictions. The rentals are recognized as a major contributor to the Coast’s tourism industry, attracting families and groups to communities for a weekend getaway or longer vacation stays. However, complaints from residents about issues such as noise and parking have followed.

BSLCity Hall

 
The new ordinance aims to “identify short-term rentals operating in the City, better ensure they operate in a manner consistent with public health and safety, promote accountability, preserve the established character of existing neighborhoods, gain contact information for code enforcement and compliance, and encourage the cooperation of short-term rental booking service providers in accomplishing these purposes.”
 
The ordinance recognizes the value of short-term rentals to the economy while acknowledging the need for regulating the rentals “to allow citizens the quiet enjoyment of their homes and properties.”
 
Before their vote, the council heard comments from a few residents and rental homeowners. Speakers described the proposed ordinance as “bare bones” with basic rules, “a cash grab, plain and simple,” and “overreaching” and “unfair” to short-term rental owners.

Shoofly file photo of old BSL City Hall

 
“We’re never going to make an ordinance that is going to satisfy everybody,” said council president Doug Seal. “We all have different opinions on it. But again, when you start negatively impacting your neighborhood, that’s when government gets involved.”
 
The ordinance does not put a limit on the number of short-term rentals that can operate in the city. The exact number is hard to pin down, but according to the city’s Comprehensive Plan, in June 2023 Bay St. Louis had 472 active STR listings in its Zip Code. That is a 43 percent increase since June 2022 and a 186 percent increase since June 2019, “illustrating that the local supply of STR is increasing significantly.”
 
The plan, adopted in July, said the number of bookings has increased from under 1,000 nights in May 2018 to 6,367 nights in May 2023. “In order to more directly manage these properties, the city could consider enacting policies related to licensing, zoning standards, and other policies, as well as increased tax revenue,” according to the plan.
 
Here are some highlights of the new ordinance:
 

• The operator must provide a 24-hour contact who will respond to complaints and take action to resolve complaints.
• There is a $100 fee to register each unit, and it must be renewed annually.
• No on-street parking is allowed at the rentals, and a proposed parking plan must be submitted with an application, though no details are provided.
• Violations are punishable by a fine of no more than $500 each. Permits will be revoked after three violations within a 12-month period.
• Short-term rentals are subject to inspections at the time of registration and regularly thereafter, but details on who will conduct the inspections and when have not been worked out.

 
"This ordinance is designed to ensure that property owners, visitors, and neighbors are protected,” Mayor Mike Favre said. “It’s not about restricting short-term rentals but about creating a regulatory framework that upholds our standards and maintains Bay St. Louis as a premier coastal destination for both residents and visitors."
 
The City of Bay St. Louis will begin accepting applications for short-term rental registration on October 1. The application will be available on the Bay St. Louis city website starting in mid-September.
 

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